As bad as the housing crisis has been over the past three years, it has only been a warm up to what we have headed our way… [In fact,] the forecast is horrific, to say the least!28% of US homeowners already owe more on their mortgage than their home is worth [and]… 27% of American homeowners are considering walking away from their mortgage…This is going to significantly drive home prices further down. [Let's look at the details.] Words: 657
It would appear that the U.S. is in an untenable position – between a rock and a hard place – in an inescapable debt trap – where the options are, at best, dire – hyperinflation or a deflationary depression! It would seem that all we can do is ride out the storm in a boat laden with gold. Words: 2283
Anyone who sees a rising pool of millions of delinquent mortgages as the foundation of a recovery in housing valuations isn’t considering the feedback loop which is now firmly in place. The foreclosure pipeline will be full for years to come precluding any “recovery” in housing valuations as supply will swamp demand. Words: 385
The next phase of the real estate disaster is upon us. It’s just shifted from subprime to Option ARM and with many economists predicting unemployment will stay in the double digits, foreclosures will only accelerate, which will add to bank losses, which will add pressure to the financial system and broader economy. Words: 547
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